Friday Feature - Unpaid Sales Tax

Obviously, taxes must be paid, so when you are ready to make a payment, Escape Online automatically calculates the state sales tax, the county sales tax and the local sales tax. But knowing how much needs to be paid is not enough. You also need to actually pay the amount. So what do you do when a vendor does not collect sales tax, but you still need to pay it?

Escape Online makes this a non-taxing effort with the Unpaid Tax Amount. (Love those puns!)

When you are entering a payment that has unpaid sales tax on it, all you need to do is put that amount in the Unpaid Tax Amount field. When the payment is processed, Escape Online automatically credits the amount in that field to the sales tax account(s).

Seriously, everything happens behind the scenes in the journal entries.

You don't have to figure out the taxes, and you don't have to figure out the tax account, AND you don't have to enter the account in the payment. Amazing!

But that's not all!  Escape Online isn't finished making this super simple.

All of this figuring out of accounts is directed by your simple setup of three fields in the Ledger tab of the Organization record.

Escape Online uses these object codes to determine the account: the fund from the expense account, the object code listed here and resource 0000. Escape Online then charges the full amount to the expense account from the req/payment.

Obviously, the check to the vendor is cut for the INVOICED amount which does not include the Sales Tax. For the sales tax, Escape Online credits the sales tax account (based on the codes entered above) with the sales tax amount.

Finally, at the end of the year, your only task is to cut a check to the State Board of Equalization for all the sales tax collected out of these fund-object-0000 (resource) accounts.

Now that is not taxing at all.